Book- Options, Futures and other Derivatives by John C Hull. Chapter 4- Interest Rates.

Q. Determine/calculate the zero-rate yield curve based on the 5 bonds given in the following table:

Bond Principal Time to Maturity(yrs) Coupon per year($)* Bond price($)

100 0.50 0 99.5

100 0.75 0 99.25

100 1.00 0 98.8

100 1.25 4 102.5

100 1.50 5 105.0

100 2.00 6 106.5

* Half the stated coupon is paid each year.